Selling a company in 2020 does not mean selling it for a reduced price

[vc_row][vc_column][vc_column_text css=”.vc_custom_1605871272425{margin-bottom: 15px !important;border-bottom-width: 0px !important;}”]The COVID-19 crisis has affected most sectors, including the M&A. Several entrepreneurs are asking how the value of their company has changed because of the crisis. To answer this question, we have to separate those firms that have the financial capacity to survive this crisis and those who don’t. The […]

The sales and purchase agreement (SPA): what should it contain?

Sale and purchase agreement

[vc_row][vc_column][vc_column_text]The last step of an M&A process is known as the sale and purchase agreement or SPA. It’s time to finalize the agreement and sale price of the firm once a buyer has completed the entire due diligence process and evaluated the company’s current condition for sale. In order to include all of the terms […]

How to value a company? The business valuation process

Business valuation process

[vc_row][vc_column][vc_column_text]Are you thinking of buying or selling a company? In the world of mergers and acquisitions, the business valuation process plays a fundamental role in determining the best estimate value for a business given all its counterparts. There are numerous advantages in understanding the intricacies of the valuation process that will be covered in this […]

Why is a Company Valuation Important?

Why is a Company Valuation Important?

It is time to materialize all the work you have done for an entire lifetime. How can you prove that is the right moment? The most important instrument to figure out this doubt is the company valuation. Before explaining the reason why the valuation of a company is necessary inside a M&A process, it is […]

M&A Deal: Increasing Value

Increasing the Firm’s Value in an M&A Deal

[vc_row][vc_column][vc_column_text]The primary objective for most sellers in an M&A deal is to maximize price increasing the firm’s value. While many people assume that valuation in an M&A deal is driven either by the mechanical application of EBITDA multiple valuation techniques or simply by the party who has greater negotiating power, in fact the final sale […]

Bridging company valuation disputes with investment risk-sharing formulas

Company valuation and investment risk - sharing formulas

[vc_row][vc_column][vc_column_text]Many private investment transactions do not close due to issues about how future business risks are allocated between the parties. Investors often want to take as little risk as possible, which leads to them offering lower entry company valuation. Company owners, on the other hand, often reject low company valuation on the ground that they […]